To,
The members of
Agrimony Commodities Limited
Your Directors have pleasure in presenting the 30th Annual Report together
with the Audited Financial Statements for the year ended on 31st March, 2021.
1. FINANCIAL HIGHLIGHTS:
| Particulars |
Standalone |
Consolidated |
|
2020-2021 |
2019-2020 |
2020-2021 |
2019-2020 |
| Net Sales/ Income from |
- |
10.40 |
0.01 |
11.04 |
| Operations |
|
|
|
|
| Other Income |
73.82 |
77.68 |
81.25 |
95.09 |
| Total Income |
73.82 |
88.08 |
81.27 |
106.13 |
| Less: Expenditure |
(19.01) |
(52.87) |
(30.92) |
(73.67) |
| Profit / (Loss) before Interest |
54.81 |
35.21 |
32.55 |
32.55 |
| & Exceptional Items |
|
|
|
|
| Less: Interest |
13.45 |
10.26 |
13.50 |
10.28 |
| Profit/(Loss) after Interest |
41.36 |
24.95 |
36.85 |
22.18 |
| before Tax & Exceptional |
|
|
|
|
| Items |
|
|
|
|
| Exceptional Items |
(0.75) |
(3.64) |
(8.71) |
(2.62) |
| Profit before Extraordinary |
40.60 |
21.31 |
28.13 |
19.57 |
| Items and Tax |
|
|
|
|
| Extraordinary Items |
- |
-97.12 |
- |
(97.12) |
| Profit/(Loss) before Tax |
40.60 |
(75.80) |
28.13 |
(77.55) |
| Less: Tax provisions |
(15.77) |
(0.01) |
-9.23 |
0.15 |
| Profit/(Loss) After Tax |
24.83 |
(75.81) |
18.90 |
(77.40) |
| Add: Profit/(Loss)Brought |
101.23 |
177.04 |
80.03 |
157.34 |
| Forward |
|
|
|
|
| Amount available for |
126.06 |
101.23 |
98.93 |
80.03 |
| Appropriation/(Loss) |
|
|
|
|
2. STATEMENT OF COMPANYS AFFAIRS:
The Income from operation for the financial year 2020-2021, for the year under review
was Nil as compared to Rs. 10.40 Lakhs during the previous financial year 2019-20. The
company revenue has decreased by 100%. The Profit before Tax stood at Rs. 40.60 Lakhs
during current financial year 2020-2021, as compared to loss of Rs. -75.80 Lakhs in the
previous financial year 2019-2020.
The Net Profit ratio is 33.64% in the current financial year 2020-2021 as compared to -
86.06% is previous financial year 2019-20. In value terms the Net Profit went up 3.05
times from Rs. -75.80 Lakhs to Rs. 24.83 Lakhs.
3. SHARE CAPITAL:
The issued subscribed and paid up Equity Share Capital as on 31st March, 2021 comprised
of 1,13,90,000 Equity Shares of Rs. 10/- each amounting to Rs. 11,39,00,000/-. The Company
has neither bought back its shares, nor has been it issued any share during the year under
review.
4. DIVIDEND:
With a view to strengthen the financial position of the Company, Your Board of
Directors have not recommended any dividend for the financial year 2020-2021.
5. RESERVES:
The Company has not transferred amount to any reserve.
6. CHANGE IN NATURE OF BUSINESS OF THE COMPANY:
During the period under review, there was no change in nature of business of the
Company.
The companys financial assets constitute more than 50 per cent of the total assets and
income from financial assets constitutes more than 50 per cent of the gross income. A
company which fulfils both these criteria will be registered as NBFC by RBI. Hence if
there are companies engaged in agricultural operations, industrial activity, purchase and
sale of goods, providing services or purchase, sale or construction of immovable property
as their principal business and are doing some financial business in a small way, they
will not be regulated by the Reserve Bank. Interestingly, this test is popularly known as
50-50 test and is applied to determine whether or not a company is into financial
business.
The Principal business of the Company is to purchase and sale of agricultural products.
In FY 2020-21, the Directors had not found the profitable strategy to expand the business
and hence interest income showing major income in P & L A/c. Management is of the
opinion that the principal business of the Company remains same and will do the business
when get profitable contract and therefore the funds lying in the company has be given as
a ICD on interest basis.
6. BOARD OF DIRECTORS:
6.1 Composition
The Board of the Company presently consists of 4 directors, out of which 2 (Two) are
independent Directors.
6.2 Retirement by Rotation
Pursuant to the Clause 129 of the Articles of Association of the Company read with
Section 152 of the Companies, Act 2013, Mr. Jairaj Vinod Bafna is due to retire at the
ensuing Annual General Meeting and is eligible for re-appointment.
6.3 Independent Director
Declaration by Independent Director:
All the Independent Directors have given declarations that they meet the criteria of
independence as lay down under Section 149(6) of the Companies Act, 2013.
As per [Reg 25(8) & (9) of SEBI LODR AMENDMENT] Independent Director:
Independent Director provided, at first board meeting, a declaration confirming his
independence.
Board to take on record such declaration and confirmation after undertaking assessment
of the veracity of the same.
6.4 Number of Meetings of the Board
During the year under review, 4 (Four) Board Meetings were duly held. The intervening
gap between the Meetings was not more than 120 days as prescribed under the Companies Act,
2013.
| Sr. No. |
Date of Meeting |
| 1 |
31/07/2020 |
| 2 |
08/09/2020 |
| 3 |
13/11/2020 |
| 4 |
09/03/2021 |
ATTENDANCE OF THE MEETING:
| NAME |
DESIGNATION |
ATTENDANCE PARTICULARS |
|
|
BOARD MEETINGS |
LAST AGM |
| ANADRAO |
Managing Director |
4 |
Yes |
| BALKRISHNA |
|
|
|
| GOLE |
|
|
|
| JAIRAJ VINOD |
CFO (KMP) |
4 |
Yes |
| BAFNA |
|
|
|
| SURESH |
Independent Director |
4 |
Yes |
| KULKARNI |
|
|
|
| DATTATRAYA |
|
|
|
| NALINI |
Independent Director |
4 |
Yes |
| SUBBANNA |
|
|
|
| SHETTY |
|
|
|
6.5 Separate Meeting of Independent Directors
A separate meeting of Independent Directors of the Company was held on 30.03.2021 in
accordance with the provisions of clause VII of the schedule IV of the Companies Act, 2013
7. KEY MANAGERIAL PERSONNEL:
During the year under review, Mr. Virendra Singh, Company Secretary & Compliance
Officer of the Company resigned from Office on June 25, 2020 and Ms. Shriya Maheshwari has
been appointed as Company Secretary & Compliance Officer of the Company w.e.f. July
01, 2020.
In terms of the provisions of the Act and in terms of the Memorandum and Articles of
Association of the Company, Mr. Jairaj Bafna retires by rotation. The said Director has
offered himself for re-appointment and resolution for his re-appointment, is incorporated
in the Notice of the Annual General Meeting.
8. DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, with
respect to the Directors Responsibilities Statement, it is hereby confirmed that: a. in
the preparation of the annual accounts, the applicable accounting standards had been
followed along with proper explanation relating to material departures; b. the directors
had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state
of affairs of the company at the end of the financial year and of the profit and loss of
the company for that period; c. the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of this Act
for safeguarding the assets of the company and for preventing and detecting fraud and
other irregularities; d. the directors had prepared the annual accounts on a going concern
basis; and e. the directors had laid down internal financial controls to be followed by
the company and that such internal financial controls are adequate and were operating
effectively. f. the directors had devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
effectively.
9. DISCLOSURES RELATED TO COMMITTEES/COMMITTEE RECONSTITUTION:
9.1 Audit committee
The Composition of the audit committee is in conformity with the provisions of the
Section 177 of the Companies Act 2013 which comprises as follows:
| Sr. No. Name of Members |
Designation |
Number of Meetings during the Financial Year |
|
|
Held |
Attended |
| 1. Mr. Suresh Kulkarni |
Chairman & Independent Director |
4 |
4 |
| 2. Ms. Nalini Shetty |
Member & Independent Director |
4 |
4 |
| 3. Mr. Jairaj Bafna |
Member |
4 |
4 |
Company has conducted 4 (Four) Audit Committee Meeting during the year 2020-2021.
9.2 Nomination & Remuneration Committee
The Composition of the Nomination Remuneration committee is in conformity with the
provisions of the Section 178 of the Companies Act 2013 which comprises as follows:
| Sr. No. Name of Members |
Designation |
Number of Meetings during the Financial Year |
|
|
Held |
Attended |
| 1. Ms. Nalini Shetty |
Chairman & Independent Director |
1 |
1 |
| 2. Mr. Suresh Kulkarni |
Member & Independent Director |
1 |
1 |
| 3. Mr. Jairaj Bafna |
Member |
1 |
1 |
Company has conducted 1 (One) Nomination and Remuneration Committee Meeting during the
year 2020-2021.
9.3 Stakeholder Grievances Committee Minutes
The composition of the Stakeholder Grievances Committee is in conformity with the
provisions of the Section 178 of the Companies act 2013 which comprises as follows:
| Sr. No. |
Name of Members |
Designation |
Number of Meetings during the Financial Year |
|
|
|
Held |
Attended |
| 1. |
Mr. Suresh Kulkarni |
Chairman & Independent Director |
1 |
1 |
| 2. |
Ms. Nalini Shetty |
Member & Independent Director |
1 |
1 |
| 3. |
Mr. Jairaj Bafna |
Member |
1 |
1 |
Company has conducted 1 (One) Stakeholders Grievances Committee Meeting during the year
2020-2021.
10. PERFORMANCE EVALUATION:
Pursuant to the provisions of Section 134(3)(p) of the Companies Act, 2013 and Schedule
IV of the Companies Act, 2013, the board has carried out the annual performance evaluation
of the Board as the whole, various Committees of the Board and of the Directors. The
performance evaluation of the Independent Directors was carried out by the entire Board.
The Directors expressed their satisfaction with the evaluation process.
The performance of the board was evaluated by the board after seeking inputs from all
the directors on the basis of criteria such as the board composition and structure,
effectiveness of board processes, information and functioning, etc.
The performance of the committees was evaluated by the board after seeking inputs from
the committee members on the basis of criteria such as the composition of committees,
effectiveness of committee meetings, etc.
The Board and Nomination and Remuneration Committee reviewed the performance of the
individual Directors on the basis of the criteria such as Transparency, Performance, etc.
In the separate meeting of Independent Directors, performance of non- independent
Directors, performance of the board as a whole and performance of the Chairman was
evaluated, considering the views of the executive directors and non- executive directors.
The same was discussed in the Board meeting that followed the meeting of independent
directors, at which the performance of the board, its committee and individual Directors
was also discussed.
The Board and the Nomination and Remuneration Committee reviewed the performance of
individual directors on the basis of criteria such as the contribution of the individual
director to the board and committee meetings like preparedness on the issues to be
discussed, meaningful and constructive contribution and inputs in meetings, etc.
In the board meeting that followed the meeting of the independent directors and meeting
of Nomination and Remuneration Committee, the performance of the board, its committees,
and individual directors was also discussed. Performance evaluation of independent
directors was done by the entire board, excluding the independent director being
evaluated.
11. DEPOSITS:
The Company has not accepted any deposits covered under Chapter V of the Companies Act,
2013, during the financial year and as such, no amount on account of principal or interest
on deposits from public was outstanding as on 31st March, 2021. The Company has no deposit
which is not in compliance with the provisions of Chapter V of the Companies Act, 2013 and
as the Companies (Acceptance of Deposit) Rules, 2014.
12. SUBSIDIARY:
Pursuant to the provisions of Section 129(3) of the Act, the Company has attached along
with its financial statement a separate statement containing the salient features of the
financial statement of the said wholly owned subsidiary in "Form AOC-1"
which is annexed as "Annexure - A". Further, pursuant to the provisions
of Section 136 of the Act, the financial statements of the Company, consolidated financial
statements along with relevant documents and separate audited financial statements in
respect of subsidiaries, are available on the website of the Company.
13. CONSOLIDATED FINANCIAL STATEMENTS:
As stipulated under the provisions of the SEBI (Listing Obligations & Disclosure
Requirements), Regulations, 2015, the Consolidated Financial Statements have been prepared
by the Company in accordance with the applicable Accounting Standards. The audited
Consolidated Financial Statements together with Auditors Report form part of the
Annual Report.
14. INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY:
Company has reviewed the Internal Financial Control Report which has been submitted
last year by Internal Auditor, which required management intervention and actions. The
actions taken by the management were reviewed by the internal auditor as per their report
for the financial year 2020-2021.
The Board of Directors hereby report that that the same has been considered and proper
action as envisaged has been taken.
15. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT BY COMPANY:
During the year under review, your company has granted loans to the extent of Rs.
10,00,00,000 out of which Rs. 34,40,000 has been invested in Wholly Owned subsidiary i.e.
Advantage Commodities Pvt. Ltd. and is following the provisions of Section 186 of the
Companies Act, 2013.
During the year under review, your Company has not given any guarantee to any person
falling under ambit of Section 186 of the Companies Act, 2013.
16. PARTICULARS OF CONTRACTS OR ARRANAGEMENTS WITH RELATED
PARTIES:
All related party transactions made during the financial year 2020-2021 were on arms
length basis and were in the ordinary course of business. All transactions with related
parties are placed before the Audit Committee as also the Board for approval. Prior
omnibus approval of the Audit Committee is obtained for the transactions which are of
afore seen and repetitive nature.
The transactions entered into pursuant to the omnibus approval so granted are audited
and a statement specifying the nature, value and terms & conditions of all related
party transactions is placed before the Audit Committee and the Board of Directors for
their approval on a Half yearly basis.
All transactions entered into with related parties during the year were on an arms
length basis and were in the ordinary course of business. Accordingly, there are no
transactions that required to be reported in Form AOC-2.
17. EXTRACT OF ANNUAL RETURN:
The Extract of Annual Return in Form MGT-9 pursuant to Section 92(3) of the Companies
Act, 2013 and rule 12(1) of Companies (Management and Administration), Rules 2014 is
placed on the website of the company.
Therefore, the web address of the company wherein the annual return referred above is
placed is "http://www.agrimonycommodities.com".
Additionally, for being Corporate Hygiene, the Company has also provided with the
Extract of Annual Return in Annexure B under Form MGT 9.
18. MATERIAL CHANGES AND COMMITMENTS:
After the closure of financial year company has received Notice from Registrar of
Companies under Section 207(3) of the Companies Act, 2013 for Conduct of Inspection and
Inquiry. Our company has requested to Registrar of Companies for extension of hearing in
order to provide the accurate and sufficient data as required to resolve the queries on
appropriate basis.
Further the directors of Company unable to appear before the Registrar of Companies
along with the documents mentioned in the Summon Notice, due to constant change in finance
team and hence forth it wont suffice for the aforesaid summon requirements.
As per Section 207(4) of the Companies Act, 2013 directors or officers of the company
has been disqualified from holding an office in any company.
19. RISK MANAGEMENT POLICY:
During the year under review, the Company has identified and evaluated elements of
business risk. Business risk, inter alia, further includes fluctuations in foreign
exchange, Raw Material Procurement risk, Environmental & Safety Risk, Working Capital
Risk, Market Risk and Business Operations Risk. The risk management framework defines the
risk management approach of the Company and includes periodic review of such risk and also
documentation, mitigating controls and reporting mechanism of such risks. The Board of
Directors and senior management team currently assess the operations and operating
environment to identify potential risks and take necessary mitigation actions.
20. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/ COURTS /TRIBUNALS:
No significant or material orders were passed by the Regulators or Courts or Tribunals
which impact the going concern status and Companys operations in future.
21. REMUNERATION POLICY:
The Board has, on the recommendation of the Nomination & Remuneration Committee
framed a policy for selection and appointment of Directors, Senior Management and their
remuneration including criteria for determining qualifications, positive attributes and
other matters provided under sub section (3) of section 178 of the Companies Act 2013. The
Companys Remuneration Policy for Directors, Key Managerial Personnel and other
employees is available on Companys website at www.agrimonycommodities.com and also
enclosed as "Annexure - B".
22. CORPORATE GOVERNANCE:
As per Regulation 15 (2) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, para C of Schedule V relating to Corporate Governance Report, shall not
apply to company listed on SME Exchange. The Company being a company listed on BSE SME
Platform, preparation of corporate governance is not applicable.
23. MANAGEMENT DISCUSSION AND ANALYSIS:
In terms of the Regulation 34 read with Schedule V of SEBI (LODR) Regulations, 2015,
Management Discussion and Analysis is set out in the Annual Report as "Annexure-D".
24. BUSINESS RESPONSIBILITYREPORT:
Pursuant to Regulation 34 of the Listing Regulations, 2015, Business Responsibility
Report is not applicable to the Company. The Company has adopted voluntarily and is set
out in the Annual Report as "Annexure-E".
24. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND
OUTGO:
A. Conservation of energy, technology absorption:
As the Company does not fall under any of the industries listed out in the Schedule
appended to the Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988, particulars required to be disclosed with respect to conservation
of energy and technology absorption, are not applicable to the Company.
The operations of your Company are not energy intensive. Your Company takes various
measures to reduce energy consumption by using energy efficient computer systems,
electrical and electronic equipment and procuring energy efficient equipment and gadgets
in its operation. As an ongoing process, your Company evaluates new technologies and
techniques to make its infrastructure more energy efficient.
B. Foreign Exchange Earning/Outgo:
The Company has no Foreign Exchange Earning / Outgo in Financial Year 2020-2021.
25. AUDITORS:
25.1 Statutory Auditors:
Pursuant to the provisions of section 139, of the Companies Act, 2013 and the Companies
(Audit and Auditors) Rules, 2014, M/s. V. R. Bhabhra & Co. Chartered Accountants,
bearing Registration No. 112861W, hold office up to the conclusion of the Annual General
Meeting to be held in the year 2022. The Company has received a certificate from the said
auditors that they are eligible to hold office as the Auditors of the company.
The Ministry of Corporate Affairs vide their notification dated 7th May,
2018 has amended the Section 139 of the Companies act, 2013 by omitting the necessity of
ratification of the appointment of the Statutory Auditors by members of the Company at
every subsequent Annual General Meeting. In order to align with the amended Section 139,
the relevant subject matter is included in the notice of the Annual General Meeting for
seeking approval of the members.
There are no qualifications, reservations or adverse remark in the Audit Report and
Internal Financial Control Report issued by the Statutory Auditor of the Company for
Financial year ended 31st March 2021.
25.2 Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules 2014, the Company has
appointed M/s. HD & Associates, Company Secretaries (C.P. No. 21073), to undertake the
Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as "Annexure
- E" and forms an integral part of this report. The Secretarial Audit Report for
the year ended on March 31, 2021 does not contain any qualifications, reservations or
adverse remarks.
There are no qualifications, reservations or adverse remark or disclaimer made by the
auditor in their Report.
25.3 Internal Auditors
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and As per Rule 13
of Companies (Accounts) Rules 2014, the Company has appointed M/s. J. D. Jhaveri &
Associates, Chartered Accountants were appointed as Internal Auditors by the Board of
Directors for 2020-21 and they have internal audits periodically and submitted their
reports to the Audit Committee. Their reports have been reviewed by the Statutory Auditors
and the Audit Committee.
26. MANAGERIAL REMUNERATION:
Disclosures with respect to the remuneration of Directors and employees as required
under Section 197 of Companies Act, 2013 and Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith and marked
"Annexure - F".
27. PARTICULARS OF EMPLOYEES:
The provisions of Rule 5(2) & (3) of the Companies (Appointment & Remuneration
of Managerial Personnel) Rules, 2014 requiring particulars of the employees in receipt of
remuneration in excess of Rs. 1.02 Crores per year to be disclosed in the Report of Board
of Directors are not applicable to the Company since none of the employee was in receipt
of remuneration in excess of Rs. 1.02 Crores during the financial year 2020-2021.
28. DISCLOSURE OF ANTI SEXUAL HARASSMENT POLICY AND INTERNALCOMPLAINTS COMMITTEE:
(SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT,
2013):
The Company has formulated and implemented a policy on prevention of sexual harassment
at workplace with a mechanism of lodging complaints. The Company has in place an
Anti-Sexual Harassment Policy in line with the requirements of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. The Company has
constituted the Internal Complaint Committee to consider and resolve all sexual harassment
complaints. During the year under review, no case was reported under Section 22 of the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
29. CORPORATE SOCIAL RESPONSIBILITY (CSR):
During the year under review, CSR related provisions of the Companies act, 2013 do not
apply to the Company as the Company does meet profit, turnover or net worth criteria
prescribed in this regard. Since the CSR norms are not applicable to the Company, the
disclosures as per Rule 9 of Companies (Corporate Social Responsibility Policy) Rules,
2014 are not required to be made.
30. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:
The Company has established the Vigil Mechanism Policy/ Whistle Blower Policy for the
Directors and employees for reporting the genuine concerns and grievances, significant
deviations from the key managerial policies and reports any non-compliance and wrong
practices, e.g. unethical behavior, fraud, violation of law, inappropriate behavior/
conduct etc.
The functioning of the vigil mechanism is reviewed by the Audit Committee from time to
time. None of the directors or employees has been denied access to the Audit Committee of
the Board.
The Vigil Mechanism Policy/ Whistle Blower Policy is uploaded on the Website of the
Company at www.agrimonycommodities.com.
31. COMPLIANCE WITH SECRETARIAL STANDARDS:
The Directors have devised proper systems to ensure compliance with the provisions of
all applicable Secretarial Standards and that such systems are adequate and operating
effectively
32. ACKNOWLEDGEMENTS:
The Directors wish to thank and deeply acknowledge the co-operation, assistance and
support extended by various Government Authorities, Companys Bankers, Dealers, Vendors,
Customers, Suppliers, Shareholders, Stock Exchange and others who have supported the
company during its difficult time and hope to receive their continued support.
The Directors also wish to place on record their appreciation for the all-round
co-operation and contribution made by employees at all levels.
|
By Order of the Board of Directors |
|
For Agrimony Commodities Limited |
|
Sd/- |
|
Anandrao Gole |
|
Chairman & Managing Director |
|
DIN: 06668955 |
| Place: Mumbai |
|
| Date: September 09, 2021 |
|
+91-9892691696
